Kentucky hospital files for bankruptcy protection

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Owenton, Ky.-based New Horizons Medical Center, formerly Owen County Hospital, has filed for Chapter 11 bankruptcy protection, according to a Lexington Herald-Leader report.

This isn't the first time the nonprofit hospital, which filed for reorganization under Chapter 11 on May 29, has been in financial peril.

In 2001, the hospital was on the verge of shutting its doors due to its financial troubles when a pharmacist formed a nonprofit and purchased the facility with a $5.4 million loan from the U.S. Department of Agriculture, according to the report.

An affidavit filed in the bankruptcy proceeding shows the hospital still owes $4.33 million to the USDA.

The hospital has served the three Kentucky counties of Owen, Gallatin and Carroll since 1951, according to the report.

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